Cattle prices strong
Fed cattle sales held firm last week with top quality calves and yearlings bringing premium prices. Local and American interest was strong, said Canfax.
Alberta prices March 31 were steers $87.70-$90.80 per hundredweight, flat rail $148.50-$149.20 and heifers $88.10-$90.65.
The holiday-shortened week and the fact retailers will be looking to replace their Easter hams and turkeys in their coolers with something else seemed to help the beef trade a bit.
Carcass weights are definitely heading down. Over the past four weeks, Alberta steer weights dropped a whooping 27 pounds while the Canadian steer weight is down 20 lb.
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The lighter carcass weights and reduced tonnage are positive for the market. Western Canadian feedlots are current in their marketings and as a result, the front-end supply is in excellent shape. Prices are expected to hold around $90 per hundredweight in the short term.
Cows traded steady last week. Most D1-2 cows are still spread from $50-$60 per cwt., with sales to $63.75 on good grain-fed types. D3s were from $35-$50, with sales to $55. Outlook is steady.
Feeder cattle prices were steady last week although heavier weights were under pressure, said Canfax.
Monthly feeder volumes were up almost 40 percent for March compared to last year. The first quarter of 1999 saw more than 490,000 head of feeders trade in Alberta, a 20 percent increase over the first quarter of 1998.
Feeder cattle prices are expected to be steady with more selective bidding on the animals over 800 lb. Grass-fed prices should remain strong into spring.
In stock cow trade, bred cows and heifers were steady with premiums on top quality, reputation types. Auction markets reported increased inquiry in cow-calf pair sales. Bred cows sold from $710-$1,350. Bred heifers were priced from $900-$1,100. Cow-calf pair sales were quoted from $890-$1,400.
U.S. reports fewer hogs
The United States Department of Agriculture’s March 1 report confirmed the downward trend in U.S. hog production.
The report showed that American hog producers continued breeding herd reduction at a slightly greater rate than expected by the trade, said Manitoba Agriculture’s weekly livestock report.
The number of hogs kept for breeding was six percent below year-earlier levels. Farrowing intentions for both the March-May and June-August periods are down by seven percent from last year.
However, there are likely to be more hogs marketed this spring than earlier anticipated, which depressed hog cash and futures prices.
The pig crop for December-February was also higher than expected, which could mean lower than expected hog prices in the summer months.
U.S. packers’ reaction to the report was to lower cash hog prices to $30.50 (U.S.) per cwt. by mid-week. U.S. packer margins were about about $13-$14 per hog.
The holiday-shortened week could result in a backlog of finished hogs, which may depress hog prices this week.
U.S. pork in cold storage on March 1 was 17 percent above last year at the same time.
